Lionhead has confirmed with Gamasutra that "a small number" of employees at the studio have been made redundant today, following the completion of Fable: The Journey.

The official statement notes that the studio has begun work on a number of new projects and that, "As is common in the games industry, a smaller headcount is needed as projects kick-off and ramp up as full-production gets underway."

The company says that it is working with those affected to find new jobs for them, including alternative opportunities at parent company Microsoft, and other Microsoft Studios outfits, including Rare and Soho Productions.

Microsoft was also keen to stress that it plans to add over 100 new staff to Microsoft Studios in the UK over the course of the next year.